The State has a direct interest in preserving industrial peace in a country and accordingly in all industrialized and the developing countries, step have been taken by the State to promote a healthy growth of trade union and a well organised industrial relations machinery to achieve industrial peace and prosperity with the twin object of reducing production losses due to industrial disputes; and of assisting employers and workers towards the settlement of industrial conflicts through the machinery of conciliation and arbitration

To ensure full capacity utilization, attention need to be paid to the maintained of he machinery and equipment, to maintain adequate inventory levels specially ford the fast moving spare parts and in particular to the maintenance of good industrial relations within the undertakings.

The culture of industrial relations in India is based on 'conflicts of interest' and consequently 'confrontation between labour and management' becomes inevitable. Even the existing law on the subject is based on the 'conflict of interest'.

The Government has often expressed itself that in the matter of application of labour laws and implementation of resolutions unanimously adopted at the Tripartite Labour Conferences, there should be no discrimination between the public and private sectors.